Plant-based
The report highlights that Arla, a major dairy company, lacks clear reduction targets for material non-CO2 emissions, particularly methane. Despite acknowledging the significant impact of methane emissions on the dairy industry in its 2023 Annual Report, where it states that methane accounts for 43% of total emissions from Arla farms, the company does not provide detailed reporting on methane emissions.
Greenpeace Nordic’s ‘Turning down the heat’ report estimates Arla’s methane emissions to be 13.4 MtCO2e/yr, surpassing the agricultural methane emissions reported for the Netherlands. While Arla has reduction targets for Scope 1 and 2 emissions, its approach to Scope 3 emissions is based on ’emissions intensity’ rather than absolute reduction targets, contrary to the UN’s Integrity Matters standard recommendations.
The report also points out that Arla’s efforts to transition to a more sustainable production system are limited. Despite the launch and expansion of its plant-based brand, Jörd, Arla’s plant-based revenue in the UK represents only 0.3% of its total revenue, indicating a lack of commitment to fully transforming its portfolio to reduce emissions.
Arla’s reliance on technological solutions, such as feed additives and biogas production, raises concerns about the scalability and long-term effectiveness of these methods. While biogas production from manure has the potential to reduce emissions per kilo of milk, the report emphasizes that it may not be a comprehensive solution to achieving Arla’s emissions reduction targets.
In addition to its climate initiatives, Arla’s lobbying efforts have been criticized for undermining effective climate legislation and food system transformation. The company’s FarmAhead Check Tool and Sustainability Incentive program, aimed at reducing farm-level emissions, have faced backlash from small to medium-sized dairy farmers for promoting intensification.
Despite being structured as a cooperative, the report suggests that Arla may not fully adhere to sustainable and socially responsible practices outlined by the UN’s Global Compact principles. The company’s Board of Directors makes key decisions without significant input from its farmer members, potentially leading to unequal benefits for farmers in different regions.
Overall, the report sheds light on Arla’s challenges in addressing methane emissions, transitioning to a more sustainable production system, and engaging in effective lobbying practices. As the dairy industry continues to face scrutiny for its environmental impact, Arla’s efforts to mitigate emissions and promote sustainability will be closely monitored.
Author: Brendan Montague, Editor of The Ecologist. This article is based on a press release from Changing Markets Foundation and Greenpeace Nordic.
